Love them or hate them; non-fungible tokens/ NFTs are here to stay. While most media content has gone from excellence to simply ridiculous, NFTs acquire much more than hard-and-fast digital representations of expensive art or collectible crypto kitties, one of the best NFT. A certified NFT expert can agree on the fact that NFTs have the potential to mold the outlook of ownership in every sector of our lives, and they are becoming difficult to resist. The NFT demand rose by 299% in 2020 alone. More NFTs were marketed within 24 hours in Feb 2021 than in the totality of 2020. So, what’s driving this evolution, and how can NFTs be employed for revolutionary use? Let’s look into what NFTs are and their use in the real world.
What are NFTs?
“Non-fungible tokens” more or less indicates that it is unique and can not be supplanted with something else. For instance, a bitcoin happens to be fungible —you can trade one for another bitcoin, and you’ll get the same stuff. However, A unique trading card is non-fungible. If you switch it with a different card, you will receive something entirely different. Now, let us go through some use-cases of NFTs:
The NFT in the art market
The need and uniqueness of NFT are reevaluating the landscape of digital art. It is a much-needed safety offered by it for work published online, where content floats freely and can be copied and reshared easily, causing harm to real artists. Here comes the blockchain’s ledger technology into play that cannot be altered or copied; NFTs embed online assets with verifiable and original ownership. It is a breakthrough for digital artists in the battle against plagiarism and creative theft and encourages them to monetize their businesses.
Using NFTs in the real estate world
NFTs’ ease of use and power to prove ownership could cause a big profit in the real estate industry. Real estate is bogged down in a pond of bureaucracy inclusive of negotiators from estate agents and banks to notaries and attorneys, all increasing the expense of what should be a straightforward transaction between two parties.
By replacing these mediators with quick agreements that enable safe and simple ownership transfer, NFTs could extensively accelerate the property-buying process. All past accounts of ownership and rights are recorded in the blockchain and are instantly verifiable. NFTs also allow fractional ownership in properties, letting owners unlock value from formerly illiquid purchases and bring up funds without the help of a bank. The possibilities are endless concerning the real estate industry.
NFTs and collectibles
Due to the huge demand for unique crypto kitties among collectors worldwide in 2018, more use cases for collectibles started to appear. Many mainstream sports teams, too, observed the benefits of NFT. NBA Hot Shot, which is one of the well-known sports fan apps, began to use “NFT digital video moments” of their lead players instead of regular trading cards. NFTs generate fresh revenue streams for the sports clubs and help in increasing engagement over a geographically distributed fan base.
It is also appealing to a younger, more digital local. With NFTs, it can prove ownership and authenticity easily, and they can not be eroded over time, unlike their physical counterparts.
Revolution of the music industry by NFTs
Right now, NFTs are also making huge surges in the music industry, with popular DJ ‘3LAU’ has been reported for selling 11.6 million dollars of NFTs. Another DJ ‘Steve Aoki’ also earned 4.25 million dollars from his NFTs recently. With the help of smart contract technology, Now musicians can earmark the copyrights of their work to NFTs (Non-Fungible Tokens), so they receive royalties automatically when their music is played. Due to this, artists may finally earn their fair share of their work without profits.
NFTs in the Gaming ecosystem
In an industry with 2.7 billion-plus online players around the globe, the idea of digital collectibles is not new. In numerous gaming settings, players are urged to unlock some available special accessories regarding their characters or additional in-game gadgets that can be bought and sold in-game for fiat currencies. This creates powerful economies in the area of online gaming.
Again, it is due to the NFT qualities of less availability that makes them so precious to online players, who can search the record, origin, and authenticity of their online gadgets.
Right now, there is an estimated 78 trillion dollars of non-bankable properties in the world, inclusive of fine wine, rare stamps, real estate, and other such collectibles. NFTs might be able to provide the answer for untying this liquidity by getting these assets on-chain and authorizing for an easier and verifiable transfer of ownership.